TORONTO, ONTARIO -- (Marketwire) -- 05/08/12 -- CCL Industries Inc. (TSX: CCL.A)(TSX: CCL.B), a world leader in specialty packaging solutions for the consumer products and healthcare industries, announced today that it will invest in a new wine label plant in California.
CCL Label will invest $8 million to create a state-of-the-art plant in Sonoma with the latest label converting technologies dedicated to the wine industry. In 2011, wine production exceeded 300 million cases in the United States and has grown consistently over the last two decades. Wine continues to be a growth sector in the label industry as producers switch to pressure sensitive technology and develop increasingly complex designs to represent the brand signatures of leading wineries. CCL Label has appointed Mr. Stephan Finke as Vice President & General Manager for the new operation. Mr. Finke has a unique 25-year track record in the wine label industry, much of it as a principal of Cameo Crafts, a leading supplier to the larger wineries in both North America and Latin America. He will also join the board of CCL's recently announced joint venture in Chile.
Geoffrey T. Martin, President and Chief Executive Officer commented, "We have known Stephan for some time and have long admired his standing in the wine industry. We know that the sector has growth opportunities and coupled with our existing investments in Santiago, Chile, and Portland, Oregon, the new Sonoma plant completes the picture to give us a strong platform to become a leading player in the Americas. We expect the new plant to commence operations by the fourth quarter of 2012 and will supply customers from our existing operations in the meantime. We plan for the new site to reach profitability in its second year."
With headquarters in Toronto, Canada, CCL Industries now employs approximately 6,400 people and operates 71 production facilities globally located to meet the sourcing needs of large international customers. CCL Label is the world's largest converter of pressure sensitive and film materials for label applications and sells to leading global customers in the consumer packaging, healthcare, automotive and consumer durable markets. CCL Container and CCL Tube are leading producers of aluminum aerosol cans, bottles and extruded plastic tubes for consumer packaged goods customers in the United States, Canada and Mexico.
This press release contains forward-looking information and forward-looking statements, as defined under applicable securities laws, (hereinafter collectively referred to as "forward-looking statements") that involve a number of risks and uncertainties. Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by the words "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this press release contains forward-looking statements regarding the anticipated income, profitability and expansion of the new venture; and the Company's expectations regarding general business and economic conditions. Forward-looking statements are not guarantees of future performance. They involve known and unknown risks and uncertainties relating to future events and conditions including, but not limited to, the evolving global financial crisis and its impact on the world economy and capital markets; the impact of competition; consumer confidence and spending preferences; general economic and geopolitical conditions; currency exchange rates; interest rates and credit availability; technological change; changes in government regulations; risks associated with operating and product hazards; and CCL's ability to attract and retain qualified employees. Do not unduly rely on forward-looking statements as the Company's actual results could differ materially from those anticipated in these forward-looking statements. Forward-looking statements are also based on a number of assumptions, which may prove to be incorrect, including, but not limited to, assumptions about the following:
global economic recovery and higher consumer spending; improved customer demand for the Company's products; continued historical growth trends, market growth in specific segments and entering into new segments; the Company's ability to provide a wide range of products to multinational customers on a global basis; the benefits of the Company's focused strategies and operational approach; the achievement of the Company's plans for improved efficiency and lower costs, including stable aluminum costs; the availability of cash and credit; fluctuations of currency exchange rates; the Company's continued relations with its customers; and general business and economic conditions. Should one or more risks materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements. Further details on key risks can be found in the MD&A section of CCL's 2011 Annual Report, particularly under Section 4: "Risks and Uncertainties." CCL's annual and quarterly reports can be found online at www.cclind.com and www.sedar.com or are available upon request. Except as otherwise indicated, forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on CCL's business. Such statements do not, unless otherwise specified by the Company, reflect the impact of dispositions, sale of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them and therefore cannot be described in a meaningful way in advance of knowing specific facts. The forward-looking statements are provided as of the date of this press release and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances, except as required by law.
CCL Industries Inc.
President & CEO
CCL Industries Inc.
Senior Vice President & CFO